Answer:
c. $100,000
Explanation:
Since in the question it is given that the price elasticity of demand is unit elastic that means it is equal to one plus the total revenue do not changed if there is a change in price and the quantity demanded
So in this case, the new revenue is
New revenue = Price × Quantity
= $100 × $1,000
= $100,000
Hence, the correct option is c.
Answer:
The correct answer is B
Explanation:
The contingency is the plan, which is course of action for the business that would take if an unexpected situation occur. So, the contingency plan is the plan or method which ensures that the business is prepared for what may come.
Accrual for contingency, it is the information which is available previously to issuance of the financial statements that indicates the assets has been impaired and the loss amount could be reasonably estimated.
The one which is most likely need the accrual is the customer premium offers as it is the technique of sales promotion where the customers are provided two or more products and they pay the price lower of the combined products.
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